A200 IU Exam 2 Questions With Complete Solutions
_____ can appear on the balance sheet Correct Answers
product costs
_____ costs NEVER appear on the balance sheet Correct
Answers period
______the variable costs will ______ the contribution margin
Correct Answers decreasing; increase
3 strategies that would lower a company's breakeven point?
Correct Answers raise the sale price, lower the variable costs,
lower the fixed costs
a physical count of inventory must be taken in order to
determine the cost of goods sold under which inventory system?
Correct Answers periodic inventory system
account maintained by a MANUFACTURER that is equivalent
to a RETAILER'S merchandise inventory Correct Answers
finished goods inventory
all else constant, a 20% increase in both the selling price and
variable costs of a product will... Correct Answers lower the
company's breakeven point IN UNITS
all else constant, if the selling price falls, the per-unit
contribution margin will be... Correct Answers lower than
expected
, appears in the income statement of MERCHANDISING
businesses, but NOT in the income state of a SERVICE business
Correct Answers Gross Profit
as volume increase, average cost per unit... Correct Answers
decreases
COGS is reported as an _____ on the ______ Correct Answers
COGS is reported as an expense on the income statement
contribution margin Correct Answers sales revenue minus
variable costs
costs that are expensed as incurred Correct Answers period
costs
costs that are expensed when the product is sold Correct
Answers product costs
does FIFO or LIFO more clearly match current inventory with
sales revenue? Correct Answers LIFO
fixed costs are fixed _____ and variable ____ Correct Answers
fixed in total; variable per unit of the activity base
goods in transit from a supplier to you, shipped FOB shipping
point, should or should not be included in the inventory
account? Correct Answers should be included
_____ can appear on the balance sheet Correct Answers
product costs
_____ costs NEVER appear on the balance sheet Correct
Answers period
______the variable costs will ______ the contribution margin
Correct Answers decreasing; increase
3 strategies that would lower a company's breakeven point?
Correct Answers raise the sale price, lower the variable costs,
lower the fixed costs
a physical count of inventory must be taken in order to
determine the cost of goods sold under which inventory system?
Correct Answers periodic inventory system
account maintained by a MANUFACTURER that is equivalent
to a RETAILER'S merchandise inventory Correct Answers
finished goods inventory
all else constant, a 20% increase in both the selling price and
variable costs of a product will... Correct Answers lower the
company's breakeven point IN UNITS
all else constant, if the selling price falls, the per-unit
contribution margin will be... Correct Answers lower than
expected
, appears in the income statement of MERCHANDISING
businesses, but NOT in the income state of a SERVICE business
Correct Answers Gross Profit
as volume increase, average cost per unit... Correct Answers
decreases
COGS is reported as an _____ on the ______ Correct Answers
COGS is reported as an expense on the income statement
contribution margin Correct Answers sales revenue minus
variable costs
costs that are expensed as incurred Correct Answers period
costs
costs that are expensed when the product is sold Correct
Answers product costs
does FIFO or LIFO more clearly match current inventory with
sales revenue? Correct Answers LIFO
fixed costs are fixed _____ and variable ____ Correct Answers
fixed in total; variable per unit of the activity base
goods in transit from a supplier to you, shipped FOB shipping
point, should or should not be included in the inventory
account? Correct Answers should be included
